The government has proposed a provision for submitting tax returns from FY25 for renting auditoriums, community centres, convention halls, or similar establishments for any social events, including weddings or birthdays.
Earlier this year, the government also increased the tax on marriage registration.
This time, the tax returns for wedding venues and halls have created many questions and confusion for many.
The aim of this move, the National Board of Revenue (NBR) says, is to bring transparency in tax return forms, and the wedding venue renting will be just another sector added to 43 types of services a taxpayer can avail - subject to proof of income tax payment.
Currently, 43 types of services require proof of income tax payment.
Now this list may include renting auditoriums, community centres, convention halls, or similar establishments; obtaining and renewing licences of hotels, restaurants, motels, hospitals, clinics, and diagnostic centres.
Syed Mohammad Abu Daud, member (tax admin & human resource management) of the NBR, told Dhaka Tribune: “It has been made mandatory to submit tax returns for renting community centres, convention halls, or similar establishments; for all kinds of social event arrangements. Previously, only VAT was paid in these cases, but from this fiscal year, proof of annual tax return must also be submitted. Community centres, convention halls, or similar establishments must preserve these documentations from now on.
"However, it is not our intention to stop someone's wedding or social event, or put them in trouble. We have a clear philosophy behind it. First, we think that everyone who organizes marriage ceremonies at convention halls such as Bashundhara or any five star hotels -- has the ability to submit tax returns. Moreover, there is some confusion in the media, so I would like to clarify. Only the person who will rent should submit proof of their tax returns, not those who are about to get married."
“Second, a taxpayer must show the different sectors of their annual expenditure and expenses in those sectors. In many tax files, under costs of organizing social events, they usually write an amount as they wish. Most of the time, they show Tk50,000-Tk1 lakh, when everybody knows the amount is much higher. They do not show the actual costs of these community centres, convention halls, or establishments. In some cases, we even see them spending crores of Taka."
Thus, officials believe now there will be more transparency in preparing tax return files.
Asked how the service recipient will show their tax return proof and what documents need to be collected by the community centres or convention halls, the NBR official informed: "An acknowledgement receipt of the return, a system-generated certificate containing the name and taxpayer's identification number (TIN) of the person, or a certificate issued by the office of the Deputy Commissioner of Taxes, hard copy or soft, must be submitted and preserved."
However, the owners and managers of such community centres and convention halls had no idea about this new directive of the government.
Mohammad Atiqur Rahman, managing director of the InterContinental Dhaka, told Dhaka Tribune: "This is completely new and just proposed in the budget for FY25. We have not yet received any SRO or directive from NBR in this regard. We will follow their directives. To avail such services, payment of VAT is already a requirement. Now if there is a requirement to submit tax returns as well, I don't think there is anything to worry about."
Marriage registration taxes
The Dhaka City Corporations introduced a marriage registration tax policy in January this year.
As per the guidelines outlined by the city corporation, the taxation structure for marriage registrations depends on specific criteria.
Individuals are required to pay Tk100 for the first marriage. In case of a second marriage with the first wife alive, the fee is set at Tk5,000.
A third marriage, with two wives alive, requires a fee of Tk20,000, while a fourth marriage with three wives alive leads to an increased tax amount of Tk50,000.
